March 12, 2019, 09:46:00 AM EDT By Reuters
By Ahmad Ghaddar
LONDON, March 12 (Reuters) – Royal Dutch Shell has struck a deal with Dutch tank terminal firm HES International to partially restart a German oil refinery mothballed since 2011 in response to new restrictions on marine fuels, two trading sources told Reuters.
A new cap set by the International Maritime Organization (IMO) that will cut the sulphur content in shipping fuel to 0.5 percent from 3.5 percent from next year is set to be one of the biggest fundamental events to hit oil markets in years.
HES said it had “reached a tolling agreement with a customer,” but declined to comment on the parties involved.
However, two trading sources with knowledge of the matter told Reuters the customer in question is Shell. Shell declined to comment.
The agreement is akin to a processing deal, whereby Shell brings in the feedstock and handles the end product, one of the sources said.
HES bought the 260,000 barrel per day (bpd) refinery from ConocoPhillips in 2011 and converted it into a large-scale tank terminal facility with capacity of 1.3 million cubic metres.
The plant’s refining capacity was shuttered at a time when several European refineries were finding it uncompetitive to remain operational, as newer, more complex mega-refineries emerged in other regions like the Middle East and Asia.
But as the new IMO rules dictate a massive shift in oil product slates from higher to low sulphur, the economics are shifting and oil companies and traders are resorting to creative ideas to meet the new demand.
The IMO sulphur restrictions will lead high-sulphur fuel oil demand to fall 60 percent to 1.4 million bpd next year, while marine gasoil demand will more than double to 2 million bpd, the International Energy Agency forecast this week.
Vacuum distillation is an integral part of the refining process. VDUs typically run on residual fuel produced from distilling crude to produce vacuum gasoil which is then used to feed upgrading units that make gasoline and diesel.
However, the Wilhelmshaven VDU will not be running on residual fuel, HES said.
One of the sources said the plan is to process heavy, low-sulphur crudes like Brazilian grades to produce a range of products, including maximum 0.5 percent sulphur fuel oil or distillate marine fuels.
HES is 70 percent owned by private investment firm Riverstone, with the remaining 30 percent held by the Carlyle Group.
Infrastructure funds managed by banks Macquarie and Goldman Sachs agreed in principle last year to buy the company.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
